Breaking the Cycle of Business As Usual

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Are You Ready for the New Way of Doing Business?

Reverse Mortgage Business News

Doing business as usual is a sure recipe for failure in our fast-changing industry. First year distribution limits, borrower financial capacity and lower lending ratios are the new reality of reverse mortgage lending. Beyond industry-wide efforts like “Extreme Summit” to redefine the reverse mortgage’s public image lies a more crucial and practical consideration. Just how should we be doing business in 2014? In our most recent online training “Asking the Right Questions” which over 500 professionals attended we examined several facets of our interaction with borrowers. At the conclusion one attendee commented “prescription before diagnosis is malpractice’. In other words, to make recommendations to any prospective borrowr without first conducting extensive fact finding is both short-sighted and  unprofessional.

The Law of Reciprocity

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The Powerful Yet Unspoken Rule for Human Interaction
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Reverse Mortgage News
Reciprocity. The unspoken rule that we should repay in kind what another person has done for us. It’s one of our most powerful tools in sales or influencing others. Does it work? Here’s one example. A university professor tested the principle sending Christmas cards to perfect strangers. He was amazed as he received numerous holiday cards from these perfect strangers who never asked how they knew him. They received his card and felt obligated to respond in kind…

 

The Psychology of Influence by Robert Cialdini  

Need more reverse mortgage tools, training & technology? Visit www.ReverseFocus.com  today

Download Full Video Transcript Here

How to Be a Top Resolver

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New Year’s resolutions can be boring when they’re all about you: perhaps that’s why people seldom stick with them after the initial momentum wears off. Making resolutions that involve your business, however, is another story.

Reverse Mortgage News

Here are six ways to be a top “resolver” for your prospects, clients, staff and colleagues this year:

  1. Share the wealth. We’re talking about knowledge capital here. Instead of issuing an edict, suggest, “Here’s what I’m thinking,” which allows your people to respond. You can phrase this idea differently depending on your audience. For senior clients and prospects, you may want to say something more along the lines of, “Here are a few suggestions,” or “Have you considered…?”
  2. Creatively connect. How are you meeting new reverse mortgage prospects? Have you considered (see above if this phrase sounds familiar!) asking people you know to introduce you to likely prospects? If you aren’t asking your connections to make new connections for you, you’re missing out on a potential goldmine.
  3. Don’t sell, add. Nobody wants to be “sold” to right out of the gate — even seniors who may contact you to learn about a reverse mortgage. Instead, choose to make “value deposits” in your future relationships vault by sharing helpful, insightful information first.
  4. Lend a hand — or an ear. It may be literal; perhaps your employee is struggling to understand the new HECM changes. Or it may be emotional: maybe what the senior who made an appointment really needs from you is non-judgmental listening as she struggles to share what’s happening in their lives and how to manage a sudden turn in their finances.
  5. Speak their language. Communication styles differ across generations, genders, cultures, and businesses. While some seniors love to email and text, others may still cling to rotary-dial phones. There are twenty-somethings who eschew technology in favor of gardening. So toss out assumptions like worn out sock, and discover how your client/prospect/business associate prefers to communicate. Then adapt. You may be pleasantly surprised to step away from the electronic soup for a face-to-face café meeting. Or chuckle at how adept your 82-year-old reverse mortgage client is with texting. Communicating across diverse channels can be a refreshing exercise for all involved.
  6. Complete the transaction. We all know the importance of saying “Please”, “Thank you”, and “I’m sorry.” But do you always remember to say, “You’re welcome”? This completes an energy circuit. A senior who thanks you for your time and information will appreciate your humility in making eye contact and saying, “You’re welcome. I’m happy to be of service.” The same is true for an employee to whom you lent that needed assistance. It says you’re really paying attention — and that you care.

What Lies Ahead?

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 What Can We Expect in 2014?

Reverse Mortgage News

With the changes and permutations the HECM program has undergone since 2010 one could argue we have already undergone a makeover of sorts. The Saver program, HECM for Purchase and the introduction and revocation of the standard fixed rate. True. However HUD’s recent revamp of the program stands apart as it’s first and only change that is a hard push back to the program’s original intent…to help senior homeowner’s age in place. The Saver gaves us increased crediability with lower costs and opened doors in the financial community. The HECM for Purchase expanded our legitimacy amongst real estate professionals and builders while the fixed rate maximized proceeds while securing interest rates. With recovering home values and a consolidated product what does 2014 hold in store? Here are just a few  speculations on what we can anticipate.

#1- New marketing. While the traditional reverse mortgage ads of the past increased public awareness of the reverse mortgage product, they have also attracted detractors concerned the typical message attempts to lure seniors with promises of vacations, luxury purchases and a flush retirement lifestyle. That may be a stretch yet it warrants our attention. In 2014 expect to see new and creative campaigns focusing on the HECM’s role in retirement planning versus cash alone. Will this attract a more affluent borrower? Time will tell.

#2- Further lender consolidation. We have already seen some medium sized lenders exit the space since last October. Expect a few remaning key players to step to the sidelines in the coming months. Today’s lending environment presents particular challenges to smaller shops with increased regulatory and compliance costs.

#3- Tenure, the loan de jour. Just as the Standard Fixed rate was the rage expect lenders and loan officers to begin promoting the powerful flexibility and growth potential of deferred tenure payments or a line of credit. Though some have lamented the loss of the standard fixed this new product landscape will convert many back to presenting the HECMs true flexibility and long term value when structured properly.

 

Download video transcript here

For more Reverse Mortgage news, technology & training visit ReverseFocus.com.

Question Everything

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Think Critically, Think BIG

Reverse Mortgage News

In any profession, continued endeavor or activity we can fall prey to complacency which I would personally define as a false sense of contentment when we can do so much better. In essence selling ourselves short. This is not to disregard that one should recall and account for their successes. But more to the point. How can we as reverse mortgage professionals break complacency and embrace the motto ‘question everything’? Well here are a few points to ponder.

#1- The adjustable rate product often a better choice? The previous popularity of the fixed rate mortgage may lurk in the minds of many but truthfully which is a better product for the consumer? Should one forgoe a lower loan balance, a growing line of credit or future tenure payments all in the fear of increasing interest rates? After all if interest rates increase the borrower sees no change except that their loan balance will grow more quickly.

#2- Ditch Your Canned Speech. Certainly their are some elements of our presentation we should retain when speaking with loan officers reviving transactions or receiving….

Ho-Hum January? Smart Marketing For All Seasons

With a little ingenuity, you and your reverse mortgage prospects and clients can find ways to celebrate all year long. For instance: did you know January is National Oatmeal Month, as well as National Soup Month and Hot Tea Month? What a perfect lead-in for a lunch ‘n’ learn, where (depending on the venue and menu available) seniors could be served tea and soup along with a heaping helping of housing wisdom.

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New Year’s Resolution Killers

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Pitfalls to avoid in 2014

Reverse Mortgage News

It’s a word many dislike due to our culture’s abuse of the word. The word resolution comes from the same root as resolve. The American dictionary defines resolve as to ‘decide firmly on a course of action’. If our resolutions for 2014 are truly our committed course of action then here are some things we should avoid to insure we meet our goals and more importantly our internal promise to ourselves.

#1- You don’t really want to achieve it. Make sure your resolutions only include those things you truly desire to come to pass. If it is a goal you think you should reach because others are then you are doomed to fail unless you are personally committed and desire it yourself.

#2 Too vague.

Download video transcript here.

For more reverse mortgage news, technology & training visit www.ReverseFocus.com

December Top 100 HECM Lenders Report

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Download your December Top 100 Retail HECM Lenders Report Here.

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IMPORTANT NOTE: This month and future reports will reflect ‘sponsor originator’ data since HFA has ceased to license brokers.

Reverse Mortgage NewsSee how your company & your competitors’ overall HECM endorsements were for the month of November.

 

For more reverse mortgage news, training and technology visit www.ReverseFocus.com